Hub International Ltd. announced today Apax Partners together with Morgan Stanley Principal Investments (MSPI) have increased their offer to acquire the insurance broker.

The arrangement agreement through which Hub will be acquired by funds advised by Apax together with MSPI has been amended to increase the consideration to be received by Hub’s shareholders to US$41.50 in cash per common share from US$40.

The increase in consideration followed receipt by Hub of competing proposals.

In the event the amended arrangement agreement is terminated under specified circumstances, Hub will be obligated to pay a break-up fee of 3% of the equity value of the transaction (US$53 million).

The amendments to the arrangement agreement have been unanimously approved by Hub’s board of directors (with interested directors abstaining) following the unanimous recommendation of a special committee comprised of disinterested directors, which was formed to, among other things, evaluate the terms of the transaction.

As previously disclosed, the transaction is expected to be completed toward the end of the second quarter of 2007 and is subject to shareholder approval, Canadian court approval, and other regulatory approvals including merger notification filings in the United States and Canada, as well as customary closing conditions.

Morgan Stanley and Merrill Lynch & Co. have provided commitments for the debt portion of the financing for the transaction.

Merrill Lynch & Co. is acting as financial advisor to Hub and Shearman & Sterling LLP is acting as legal advisor to Hub.

Scotia Capital Inc. is acting as independent financial advisor to Hub’s special committee and Goodmans LLP is acting as independent legal advisor to Hub’s special committee.

Headquartered in Chicago,Hub International is a leading North American insurance brokerage that provides a broad array of property and casualty, reinsurance, life and health, employee benefits, investment and risk management products and services through offices located in the U.S. and Canada.